Answer:
solving for the dollar
:amount:
$150,000 = 100,000 shares * ($x-$11)X = $12.50 meaning, the market price per share must be $12.50 in order to earn $150,000 which is the amount needed to break even with option #1.Therefore, stockholders would probably prefer Action#2 over Option #1 because theCEO has an incentive to operate the company in a manner which would successfully raise the market price per share from $9.00 to $12.50 in order to earn $300,000. Under Option #1, the CEO earns $300,000 regardless if the market price per share goes up or down.
2.Are ethics critical to the CEO's goal of maximizing shareholder's wealth? Is establishing corporate ethics policies and requiring employee compliance enough to ensure ethical behavior by employees?
Answer:
e. Normally, the best practices utilized by other organizations have to be adapted to fit the specific circumstances of a company's own business and operating requirements.
Explanation:
The best practices are the guidelines, ideas that are set by the company in order to run an organization in a better way. It is created by the regulators or the government bodies.
So going through the options, the option e is false as it reflects that it should be fit according to the specific needs and requirements of the business as well as the operating one
So this option would be considered
Answer:
A.50%.
Explanation:
The price elasticity of demand formula is:
PED = Change in quantity demanded / change in price
plugging the amounts into the formula we obtain:
2 = X / 25%
Now, simply solve for X:
2 x 25% = X
50% = X
Thus, the total quantity demanded would increase by 50%
Complete Question: Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________.
A) reduce the rate of customer defection
B) make low-profit customers more profitable
C) enhance the growth potential for each customer through cross-selling
D) increase the longevity of the customer relationship
E) focus disproportionate effort on high-value customers
Answer:
B) make low-profit customers more profitable
Explanation:
Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to make low profit customers more profitable.
The basic logic behind this strategy is that when customers find something coming free, then they start taking it for granted, they don't pay much attention to it, therefore, when the some services are free, customers will not be spending much on them, like upgrading, monthly plan up-gradations, monthly or annual subscriptions. Consequently, to turn the those customers into highly valuable customers, companies charge for the services which were free of cost in the past.
I believe the answer is: Capitalism
In capitalism, the economy is designed in a way to give as much freedom as it can to the private sectors in term of resource allocation and market competition. In this system, the government's role limited to maintaining regulation that prevent private organizations from cheating off one another.
